Oil prices rebound to nearly $60 a barrel

The price of oil has rebounded to just under $60 a barrel after its sharp fall at the end of last week.

The price of oil has rebounded to just under $60 a barrel after its sharp fall at the end of last week.

Analysts said forecasts for another US cold spell hit Opec's plans to keep output at near full-throttle through the winter.

US crude rose 55 cents to $59.94 a barrel, recovering from its 2.1 per cent slide on Friday, while London Brent crude was up 69 cents to $58.00 a barrel.

Oil raced to its highest level in five weeks on Friday and natural gas set a second consecutive record-high as icy weather gripped the US Northeast and Midwest, driving up demand for heating fuels.

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Profit-taking reversed those gains by Friday's close, but prospects for another cold snap at the weekend - after a period of more moderate weather - kept the market supported.

In Kuwait, Opec President Sheikh Ahmad al-Fahd al-Sabah said there was unanimous support to carry on pumping at the cartel's highest level for 25 years - about 30 million barrels daily.

Analysts said the market was also on edge after Sunday's explosions at the Buncefield depot in Hertfordshire, which has the capacity to hold 5 per cent of Britain's oil supply.